Austar has received a takeover offer from Foxtel, which values the pay TV company at $A1.93 billion.
The offer of $1.52 per share represents 20% more than the closing price of $A1.27 on Wednesday.
The ABC reports Foxtel made the bid after receiving approval from its biggest shareholder, US cable TV group Liberty Global.
Other shareholders in Foxtel are News Corporation (25%) and Telstra (50%).
Austar previously revealed Liberty Global was in discussions with Foxtel about a takeover.
As of December 31, Foxtel had 1.55 million direct subscribers while Austar had more than 764,000 subscribers.
The bid is subject to approval from the Australian Competition and Consumer Commission and the Foreign Investment Review Board, plus court approval.
